Wall Street surged on Monday, fueled by expectations of a coronavirus relief program and a rally in Amazon, Apple and other tech stocks as the quarterly earnings season approaches.
Apple Inc jumped nearly 7% ahead of an event Tuesday, when it is expected to unveil its latest iPhones.
Amazon rallied over 6% ahead of its annual Prime Day shopping event on October 13-14. Microsoft climbed 3.5%, helping to push the S&P 500 Information Technology Index up 3.3%.
The S&P 500 was about 1% below its all-time September 2 closing high, almost recovering from most of a 9% decline last month.
Optimistic sentiment dominated after the Trump administration called on Congress on Sunday to pass a lean coronavirus bill as negotiations over a larger package met with resistance.
“It appears the administration wants a deal to be done before the election,” said Brian Battle, chief operating officer at Performance Trust Capital Partners in Chicago. “Now it’s up to the Republican Senate to determine the size of the number.”
Many investors see Democratic candidate Joe Biden as more likely to raise taxes, and for months a second term for Trump, which favors deregulation, has been better for the entire stock market.
However, with growing expectations of a Democratic victory in next month’s presidential election, investors are increasingly pointing to the potential benefits of a Biden presidency, such as higher infrastructure spending and less uncertainty. global trade.
The betting odds aggregated by RealClearPolitics suggest that bettors see a 67% chance of Biden winning and a 33% chance of Trump, the biggest gap to date between the two candidates.
With the October 15 presidential debate officially canceled, Trump plans to visit major battlefield states this week, with his doctor saying he is no longer at risk of transmission for the novel coronavirus.
The results of major US banks will be the focus this week, with JPMorgan & Co and Citigroup due to report on Tuesday. The S&P 500 Banks Index <.SPXBK> gained 0.9%.
Overall, analysts expect third-quarter S&P 500 company profits to fall 20.7% from a year earlier, to less than 30.6% in the second quarter.
The Dow Jones Industrial Average <.DJI> was up 1.13% to 28,910.08 points, while the S&P 500 <.SPX> gained 2.01% to 3,546.95.
The Nasdaq composite <.IXIC> added 3.16% to 11,945.77.
The S&P 500 energy index <.SPNY> fell 0.4% on lower oil prices due to supply concerns. [O/R]
Twitter Inc jumped 5.7% after Deutsche Bank upgraded the shares of the social media company to “buy” on expectations of continued growth in 2021.
Rising issues outnumbered falling issues on the NYSE by a ratio of 1.48 to 1; on the Nasdaq, a ratio of 1.34 to 1 favored the advancers.
The S&P 500 posted 70 new 52-week highs and no new lows; the Nasdaq Composite recorded 158 new highs and 11 new lows. My to
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